Every organization has foundational beliefs. We may call them core values, founding principles, cornerstones, or standards of conduct. Whatever language we use, they are meant to guide how an organization and its people make decisions and behave.

They influence how we treat employees, customers, suppliers, partners, and other stakeholders, especially when the right decision is not the easiest, cheapest, or most convenient one. I like to think of these beliefs as a plumb line.

Before reading further, watch this short video on core values and consider this question: Are your organization’s stated values truly guiding its everyday decisions and behaviours?

What Is a Leadership Plumb Line?

For centuries, builders have used a plumb line to determine whether a wall is perfectly vertical. It provides a fixed and dependable standard against which the structure can be measured.

The plumb line does not straighten the wall. It does not repair the foundation or tear down the building. It simply reveals the truth.

In the same way, an organization’s values should provide a clear standard against which conversations, behaviours, and decisions can be measured.

  • Are we aligned with what we say we believe?
  • Are our actions straight and consistent?
  • Or have we gradually started leaning away from our principles?

What Happens When Leaders Drift From Their Values?

When the ethical and moral standards of a leader, owner, or manager become crooked, something must be reset. There may need to be a difficult conversation, a change in behaviour, a realignment of leadership, or even a major overhaul of the organization.

In extreme situations, a structure may be so compromised that it can no longer continue in its present form.

The plumb line does not cause that destruction. It simply reveals how far the structure has shifted and whether its foundation is beginning to crumble.

Here is a practical example:

For years, a business owner I will call Jim purchased pirated computer software because it was less expensive. He knew it was illegal and violated copyright laws, but he didn’t see it as morally wrong.

In his own mind, the reasoning may have seemed justifiable: “Everyone does it.” “The legitimate software is too expensive.” “Who would ever know?” But understandable as those rationalizations may have been, they were still fundamentally flawed.

The bubble burst, and Jim had an epiphany. He realized that his actions were the opposite of how he would want someone to treat him. They violated the Golden Rule: treat others the way you would want to be treated.

He also realized that integrity could not be applied selectively. He could not expect honesty from his employees, customers, or suppliers while excusing dishonesty in his own decisions. His standards needed to remain consistent across every area of his life and leadership, especially when no one was watching. He also had to consider the example he set for his children. After all, values and habits are often caught through observation rather than taught through words.

That is what a plumb line can reveal. It exposes gaps between what we say and what we do. It highlights cracks in our judgment. And sometimes, it uncovers hypocrisy that we have rationalized for so long that we no longer recognize it.

How Core Values Guide Leadership Decisions

As leaders, we need to regularly hold our decisions against a clear and consistent standard.

Not simply ask, “Is this legal?” Or “Can we get away with it?”

But ask: “Is this right?” “Is this consistent with our values?” “Would I be comfortable if everyone knew about this decision?” and “Would I want others to treat me the same way?”

Your values should not simply be words displayed on a wall. They should be the plumb line that keeps your leadership, your people, and your organization standing straight.